San Francisco Compound Cuts $1 Million off Asking Price

This San Francisco compound belonged to the late New York art dealer and collector Allan Stone.

A compound in San Francisco’s Potrero Hill neighborhood that belonged to the late New York art dealer and collector Allan Stone and served as his San Francisco outpost has had its asking price reduced to $4.995 million. The property was originally listed in May for $5.995 million.

The property includes an approximately 8,000-square foot main house with five bedrooms and four bathrooms as well as views of the Bay Bridge, the Marin Headlands and the city. The more than 1,200-square-foot guesthouse has one bedroom, one bath and looks towards Twin Peaks.

Mr. Stone, who represented artists including Wayne Thiebaud, paid $575,000 for the property in 1987, according to public records. He then took much of the house down to the studs, says listing agent Lisa Wolfe of Coldwell Banker Previews International. He redid the foundation, created a loft feature in the living room, added windows and landscaped the private garden, she says. He used the property, which was once an art school, as a home, a gallery and an office. Mr. Stone died in 2006.

Ms. Wolfe says the house stands out because of the scale, the views and the light. “It’s a great live-work space,” she says.

The median sales price for San Francisco homes was $850,000 for the period June 13 to August 13, up 21% from the same period in 2012, according to real-estate website Trulia.